Savings update: Rise in easy-access accounts paying more than 1%

1 August 2017
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The number of easy-access accounts paying more than 1 per cent continues to rise as new banks launch new deals.

Shawbrook Bank has raised its rate to new savers to 1.2 per cent with its Easy Access Issue 10, while Paragon Bank’s new Limited Edition Easy Access Issue 3 pays 1.15 per cent.

The best deal comes from Ulster Bank at 1.25 per cent on its e-Savings account.  French-owned RCI Bank’s Freedom Account pays 1.2 per cent to both new and existing savers. All accounts need to be opened online.

Savers are covered up to £85,000 if the bank runs into trouble by the Financial Services Compensation Scheme with all these accounts, except RCI Bank Freedom Account.  Here you have €100,000 (around £88,000) of cover under the equivalent French scheme.

On fixed-rate bonds the top rate for one year is 1.9 per cent from Shawbrook Bank followed by 1.81 per cent from new bank, PCF, launched last week. The best two-year rate is 2.05 per cent available from Paragon, Shawbrook and United Trust banks.

On tax-free cash Isas, Charter Savings Bank tops the field.  It pays 1.02 per cent on its new Easy Access Isa. It has raised its one-year fixed rate deal for new savers to 1.3 per cent and pays 1.41 per cent if you are willing to tie your money up for two years.

To beat inflation compromises need to be made as all of the small number of regular savings accounts that pay more than inflation require savers to have a current account with the provider.  Moneywise regularly keeps tabs on the savings market has found there are nine accounts that currently beat inflation.

This article was written for our sister magazine Money Observer.

 
 

 

Comments

In reply to by anonymous_stub (not verified)

I opened the Ulster Bank e-saving account on the 4 July and transferred further funds on the 6 & 7 July. However, despite numerous telephone calls I am still unable to access my account due to the none arrival of a card reader which has to be used to operate the account. On speaking to Ulster Bank today I have now been informed they have run out of the card readers and are awaiting them to arrive.I have found the staff just tell you anything to get you off the phone and are quite offhand considering it is your money they are not letting you have access to.As soon as I can I shall close the account despite it paying the highest interest rate at the moment. They are costing me money too as my other account has now fell in funds and I am not receiving all my interest I would do normally.Before advertising this account they should have made sure they could cope with supply and demand. I have read reviews that I am not the only person this is happening to and wish I had seen this information before opening the account.

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